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Cloud contact centre market still flat, says Frost & Sullivan

Holly Morgan | Oct. 6, 2015
Market awareness of the benefits of Cloud contact centres is still low in Australia.

Despite a growth rate of 99.1 percent in 2014 and $6.1 million in generated revenue, the market awareness of the benefits of Cloud contact centres is still low in Australia.

Cloud contact centre software company, IPscape, commissioned the report by about the current state of the Cloud contact centre market in Australia.

The report found that despite that 70 percent of Australian businesses use Cloud services, of these, only 20 percent use a paid Cloud service.

Frost and Sullivan said widespread adoption of the Cloud contact centre model has been hampered by the reluctance of highly regulated industries, such as financial services, that have security and privacy concerns relating to the technology.

The analyst firm said these security concerns are likely to ease in the future as the benefits of paid Cloud adoption, including agility and cost savings, will continue to stimulate the use of the Cloud model.

The report stated the market is set to experience a CAGR growth of 35.4 percent.

IPscape chief executive, Craig Neil, said that the current state of the market is an opportune time for channel partners.

“We have moved our model from direct sales in Australia to channel and are actively courting partners as we speak. The report has spelled out that the market is there,” he said.

The report found the main reasons of adoption to be lower cost of ownership (38 percent); lower overall ongoing operational costs (38 percent), improved IT staff efficiency (38 percent), improved business agility (35 percent), quick scalability of IT resources (34 percent), better monitoring of applications and infrastructure (26 percent), improved security features (21 percent), better ability in managing business demand volatility (20 percent), decreased time to market for products (17 percent) and easier penetration for new markets and channel (13 percent).

Other key trends in the use of Cloud computing in Australia include 51 percent of all companies intend to spend to increase their Cloud budget by more than 10 percent, and 21 percent intend to increase it by 20 percent during the next 12 months.

Also, 64 percent of organisations in Australia that currently use Cloud-based services plan to increase their Cloud expenditure over the next 12 months. Additionally, 70 percent of larger organisations plan to increase their budget for Cloud-based solutions, compared to 58 percent for SMEs.

According to Frost and Sullivan, key criteria to be considered in the choice of a Cloud contact centre provider include speed of deployment, upgrades and new features, scalability, ongoing costs, security, return on investment, integration and open API’s, disaster recovery and multi-tenant architecture.


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